Who is Liable for a Ridesharing Accident?

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You might jump in the back of an Uber and not give it a second thought. You can now go out and not worry about drinking and driving or a lack of parking options. The huge growth of rideshare programs such as Uber and Lyft offer an easy alternative to driving with a couple of clicks of your smartphone.

You may not realize it, but you have agreed to a contract with the rideshare program just by virtue of becoming a passenger.

Since rideshare programs are most common in urban areas, it is also not uncommon for your Uber of Lyft vehicle to be in an auto accident.

As with most auto accidents, if one party’s negligence caused the accident, that is the party responsible for your losses, your injury, medical care, and property damage.   

First, we must identify the negligent party. Second, we need to understand the coverages offered by the rideshare program and whether they apply in this auto accident.  

The filing of a personal injury lawsuit can become a complicated matter when there is a rideshare service involved. The law firm of Chip Nix invites you to contact his Montgomery office for a complimentary consultation so we can thoroughly assess your case.

Rideshare Programs

As a bicyclist, pedestrian, motorcyclist, or a passenger, it is not impossible that you could be involved in an auto accident with a car being driven by an Uber or Lyft driver.  

These rideshare programs hire drivers as independent contractors, but Uber and Lyft do provide insurance to cover the damages resulting from an auto accident.

Consider these different circumstances:

  • Driver is off duty – Also known as not signed into his/her app.  If you are hit by a rideshare driver who is not active at the time of the accident, there is no coverage from the rideshare company. S/he will have to use his personal auto insurance and you will have to seek compensation from this coverage or from your personal auto insurance.
  • Driver is on duty – If the driver is accepting new rides, and get into an accident with you, the rideshare company will provide coverage for your accident – $50,000 for bodily injury per person and $100,000 per accident. Additional property damage is covered by the rideshare program up to $25,000.  
  • Driver is transporting a customer or picking you up – If you are hit by the rideshare driver, the company will cover your damages with the $1 million in total liability.
  • Passenger coverage – If your Uber driver is in an accident that was not his/her fault, the other driver must pay to cover your injuries. If the negligent, at-fault driver is uninsured or underinsured, the rideshare company carries insurance for those instances. If your Uber driver is at-fault, the Uber or Lyft insurance policy will cover your damages up to $1 million in liability insurance.

As it now stands, before the driver logs into their Uber or Lyft app, it is up to their personal insurance to cover an accident. After logging in but before the passenger is picked up, the driver is in what is referred to as Period One. If s/he is in an accident during that time, coverage limits vary by state. Transportation Network Companies and insurance regulators suggested coverage as:

  • A minimum liability limit of $50k (bodily injury for one person)/ $100k (bodily injury total) /$25k (property damage) plus any state coverage required.
  • After the driver has accepted a rider (Periods 2 and 3), coverage includes third party liability of at least $1 million, uninsured or underinsured motorist of at least $250,000, and property damage of $25,000.

In Alabama, a statewide law took effect in 2018. It puts the Public Service Commission in charge of regulating rideshare companies. The change also mandated a more thorough background check on rideshare drivers.

Passengers in a rideshare vehicle have extra coverage in Alabama. Under the law, both the rideshare driver and the company must carry additional insurance beyond minimum requirements, including:

  • $1 million in liability
  • $1 million in underinsured/uninsured motorist coverage

Your Alabama Auto Accident Attorney

As is the case with many innovations that have emerged with online technology, the legal issues are constantly changing. 

Be assured that the rideshare companies are trying to provide themselves with the most immunity they can. The rideshare program may be liable if you are hurt because of their driver’s negligence or wrongful conduct. But the driver may only have personal injury auto insurance that does not extends to business use.

On the other hand, uninsured/ underinsured motorist coverage may be inadequate to pay for your injuries.  And it only pays during the time when the driver was on duty. In some cases, we may have to negotiate with the at-fault party’s insurer over who was the negligent party. Insurance companies will almost always fight aggressively to avoid paying a claim.

We will have to thoroughly investigate the cause of the accident to make our case against the at-fault party. If you are seriously injured while riding in a rideshare car or hit by one, your focus should be on recovery, not investigating the cause of the accident.

An experienced auto accident attorney, Chip Nix understands what questions to ask to begin the process to have your injuries compensated following a rideshare auto accident. Call attorney Nix at 334-203-6669 to arrange for a free consultation or contact us online.

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